17 November 2016

The first 3 quarters report of 2016 for ROCKWOOL International A/S

Strong profitability in a continuing slow market

Release no. 8 - 2016
To Nasdaq Copenhagen

First 3 quarters report of 2016 for ROCKWOOL International A/S

Highlights

  • Sales in local currencies in the first 3 quarters increased by 2.3%. Q3 sales grew 1.6%, measured in local currencies.
  • EBIT* increased by 40% to EUR 176 million equal to an 10.9% EBIT margin in the first 3 quarters, with significant EBIT margin increase in the Insulation Business. EBIT* in Q3 was EUR 70 million and the EBIT margin reached 12.2%.
    * Ex. redundancy costs from the Business Transformation Program from 2016 and 2015 and write-downs in Asia in 2015.
  • The Group’s business transformation program is ahead of schedule and contributed with EUR 31 million included in the EBIT result of the first 3 quarters.
  • Investment expenditure was EUR 91 million in the first 3 quarters of 2016, hereof EUR 21 million in Q3.
  • Free cash flow improved by EUR 117 million to EUR 140 million for the first 3 quarters of 2016. Q3 generated a strong free cash flow of EUR 127 million.
  • Net profit for the first 3 quarters reached EUR 122 million, an improvement of EUR 53 million. Net profit in Q3 was EUR 49 million.

Full year Outlook 2016 maintained

  • The Group’s net sales are still expected to show a small positive organic growth in local currencies.
  • EBIT margin excluding redundancy costs related to the Business Transformation Program is still expected to be around 10%.
  • Investment expenditure expectation for 2016 remains unchanged at around EUR 130 million excluding acquisitions.

CEO comment

Commenting on the Group’s performance, CEO Jens Birgersson says:
“We are pleased with the development for the first three quarters. The EBIT margin reached nearly 11%. Our free cash flow generation was strong and we are now net debt free. In the quarter, markets were relatively slow however the System segment delivered a strong top line with 8% growth.”

Further information

Kim Junge Andersen
Chief Financial Officer
ROCKWOOL International A/S
+45 46 56 03 00



Detailed report

Go to the conference call with audio webcast

2016 outlook overview